By Aimee Chanthadavong

Coles and Woolworths better get ready to put on their game faces as a new online grocery channel enters the market.

While group buying company CatchOfTheDay first announced that it was going to launch an online grocery store after it sealed an $80 million investment deal, has instead beaten them to it with the launch of sells discounted groceries at up to 30 per cent off the recommended retail price.

Elisha Booth, DealsDirect head of marketing, said at a session at the Retail Conference of CeBIT 2011, the company had initially sent an email to its DealsDirect subscribers pre-announcing the launch of and saw an 85 per cent opening rate and achieved over 7,000 Facebook likes, illustrating consumers' keen interest into the site.

“It’s our new grocery channel and we are planning to take on the big two grocery retailers. We believe we have a very strong value proposition, which is about everyday discounted prices at up to 30 per cent off,” she said.

The site stocks some of Australia’s top brands like Pantene, Colgate, Cadbury, Arnott’s and Cold Power and has divided the online grocery store into seven categories of household, personal care, pantry, hair care, baby, candy bar and health and beauty.

The 24 hour, seven days a week grocery store ships online orders to any where in country for a flat rate of $11.

“We actually delivering wider than Woolworths and Coles, so we’re pretty excited about it,” Booth said.